Current South American Fundraising Efforts

by Nicholas Jelfs

  • 07 Feb 2011
  • PE

Preqin’s Funds in Market product currently lists 47 private equity vehicles that have a primary focus on South America. Collectively these funds are targeting USD 15.3bn; 18 funds have already held an interim close raising a little over USD 2bn of this. 40% of the funds focus on real estate or infrastructure, a further 32% make venture capital and growth investments, just under 10% are targeting buyout opportunities, and 4% focus on natural resources. The remaining 14% are fund of funds, mezzanine or co-investment private equity vehicles.

With regards to GP location, 48% of the South American-focused fund managers currently in market are based in the US. A further 45% are located in South America, with 10 GP’s based in Brazil. The remaining 7% are located throughout Europe and the Rest of World (excluding South America).

Of the total 47 funds, seven are targeting over USD 500mn; the majority of which are infrastructure- and real estate-focused. One exclusively South American-focused fund is the Angra Partners Fund 2, a USD 500 mn growth-orientated vehicle. The fund makes controlled investments in companies based in Brazil, seeking to create value through EBITDA enhancement.

The Kinea I Private Equity Fund is a USD 500mn private equity vehicle targeting buyout opportunities throughout Brazil. The fund has a diversified sector focus, but generally targets the education, health and retail industries. It invests in between six and eight projects with a typical investment size of USD 60mn to USD 100mn.

For more information on private equity fundraising please see Preqin's Funds in Market product.

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